BTC going down to $5K before going up
Moving averages are one of the most used and effective indicators when you do TA. Reason, everybody uses it. The more people use a specific indicator, the more effective it it. As you can see, we held many times on the 50 week moving average (red line) witch also acted as a good resistance. The next big moving average is the 100 week moving average (green line). Just notice how perfectly its moving to the 5K level as we are moving down.
Also notice the RSI. We haven't been on these lows ever since Q4 of 2015. We have been on the overbought side for a very long time. As we are making our way down, it could touch the 30 level or anywhere near. We could also dive into some other indicators, but i like to keep it clean and simple.
So we've go a big psychological level at 5K, the 100 week moving average and the RSI heading over to the oversold side. So my conclusion is that the chances are high that 5K is the bottom.
Also a little side node... This is pure technical analytics. Things might change fast if something big happens on the fundamental side, like the Bitcoin ETF. If the ETF gets approved, chances are high that we will go up in no-time. On the other side, if it gets rejected, we might be in for some more correction.
Let me know your thoughts in the comments. Peace.
Also notice the RSI. We haven't been on these lows ever since Q4 of 2015. We have been on the overbought side for a very long time. As we are making our way down, it could touch the 30 level or anywhere near. We could also dive into some other indicators, but i like to keep it clean and simple.
So we've go a big psychological level at 5K, the 100 week moving average and the RSI heading over to the oversold side. So my conclusion is that the chances are high that 5K is the bottom.
Also a little side node... This is pure technical analytics. Things might change fast if something big happens on the fundamental side, like the Bitcoin ETF. If the ETF gets approved, chances are high that we will go up in no-time. On the other side, if it gets rejected, we might be in for some more correction.
Let me know your thoughts in the comments. Peace.
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